tv Squawk on the Street CNBC November 30, 2015 9:00am-11:01am EST
them above almost everyone else. >> that was so far ahead of him to get that. >> 3.5 million records in one week. we've come together on this. more similar than different so are we. join us tomorrow. happy st. andrew's day. >> thank you. >> "squawk on the street" is next. good monday morning. welcome to "squawk on the street," i'm carl quintanilla with jim cramer, david faber at the new york stock exchange. final day of november is here. stocks going for their first back-to-back positive month since the spring. what a week, we have in store. opec meeting, jobs report, yellen and more. we'll watch for headlines out of the climate change summit in paris. we'll get chicago pmi and
impending homes later this hour. black friday numbers are in. cybermonday deals are in full swing. the u.n. climate change conference kicks off today in paris. we'll take you there live for the latest. amazon with a sneak peek of new delivery drones and taking a shot at regulators saying they're ready to deploy when they have the regulatory support they need. first up, indications are that the holiday shopping season is off to a tepid start. americans spent about $12.1 billion over thanksgiving and black friday. that's a decline from last year. the national retail federation says more people shopped online than in stores, choosing not to wait for today's deals. a lot of these numbers are surveys. a lot of people throwing some shade at the quality of the number. don't take it to the bank. >> you can't. i think at one point it was easier when we said, look, we can -- pick 20 malls and decide
how things went. look, i think it was an amazon holiday season. i think it will be today. i don't know if you looked. the deals -- i was surveying this morning what you can get. walmart, too target. they're offering such -- they're making it so compelling, it making you feel why go to the store? why deal with the parking? apple had a very good holiday season. they offered some products that we'll have to talk about. maybe the watch is bigger than we think. the new pro, the new ipad, which i got and binged on a whole new netflix series. i feel like you can even think about going down the food chain to look at macy's, where brian had an interview with terry lundgr lundgren, he said the numbers look good. i feel better about the holiday
season. >> all we hear about is empty malls. you usually like to look at malls. i don't know if you did this weekend. >> i did. >> i spoke to people who do it professionally, others who did it because they were curious or looking to shop. again, you can't take away conclusion, but the trend that has been in place seemingly is only growing. and that is more mobile, more just online and less people actually visiting the mall. >> people are much more comfortable ordering clothes on the mobile than they used to be. people used to feel you have to try them on. listen, got all my data about who i am in facebook and what my dimensions are i can order anything and easily return it. yes. the mall was a place to go to enjoy and try things on. i don't think people find it as enjoyable. they don't need to try things on as much. we have some downgrades. fbr cutting lulu.
>> lulu, the weather did not get chilly in time. lulu has a lot of inventory. there's an undercut for under armour. my problem is it got cold. the cold weather can move a lot of inventory if it's done right. >> sales can move inventory. that's what really moves inventory, markdowns. >> lulu is a name that people are not in for the earnings. the markdowns can be big. you mentioned macy's earlier. what about the markdowns there? >> sometimes a stock at 40 when it was at 72. i went to hear someone, stock down 72. the stock has done a lot. balance sheet is okay. if terry lundgren is speaking more bullishly, that's one you want go to. >> but a sales number that looks okay for some of these retailers now who are getting rid of
inventory does not translate into big profit. >> only for tjx and ross stores who buy the inventorinventory. >> the deeper discounts will hurt gross margins. >> a lot of hot money in that stock. that's not what you do you don't buy retail for takeover. >> it's going to be an incredibly busy week. a lot of economic data led by the jobs number on friday. the last up with before the fed's december meeting. ecb set to hold a policy meeting on thursday, see if the fed unveils new stimulus measures. opec on thursday, cartel members urging saudi arabia to cut production in the wake of lower oil prices. the russell up 3.5 this month. the dow, nasdaq and s&p each poised to pose a second consecutive month of gains. even though for the year to date we'll waffle back and forth between the flat line. >> i think about the endless
stories that we read about how the saudis have to change their view and have to cut back. always other opec members want them to cut back. today there's a bloomberg business story about how saudi borrowing rates soar in december. look, saudi arabia wants low prices. that's what they want. that's what they get. pumping in a huge amount. they had a series of companies over there to explore new ways to drill in cheaper fashion. i think this whole idea that you're going to see crude go up big, i saw upgrades this morning, based on the idea that crude is finally ready go up. don't do it. don't make any bets that oil will soar from here. it doesn't seem likely. not with the production we're putting out. >> that includes any possibility of any more airspace incursions, more attacks. >> i don't know. here we are seeing what's going to happen with iran putting out projects for bid.
doing very good terms this time. it's not the original iraq deals which were not that good but still enticed people. i think oil give or take a couple bucks has bottomed. but it's lower longer is the way to think about it. it's like interest rates, lower longer. we can't get up to 50. >> so we hang around. >> we hang around. those who can't, all these different private equity companies that have so many different pipelines that they thought they could bring public, those are the ones we have to start counting down the days for. >> notably absent thus far have been the bankruptcies that we might have seen a year ago. but we've been living with low oil prices for a little bit of time. if you said a year ago they'll be right here now, i think we would have expected more. doesn't mean they're not coming, but there's more flexibility within the capital structure to keep these things going.
not to mention the point, you made many times to be able to produce another a lower cost. >> 2016, we will see the year of reorganizations. >> you have not mentioned natural gas. before we took the break you were mentioning it. the utica shale? >> southwest pennsylvania, largest fine in the history of the world. history of the world. the world! it's insane that's going on there. >> reserves that may never get to be burned at all. >> oil is so long, i don't know how many people can take the natural gas. i'm talking about a developed fine. a fine that you can pump at a dollar. it takes the whole northeast and says listen, we are uneconomic at two bucks. there's a field at $1. when i say large, largest economic field. >> when companies announce the
finds, stack goes down. >> we're in that weird phase, it's like the old days, when you hit a gusher in the gulf of mexico it was great. now it's can you hide that? texas gulf sulfur. you don't have much hope here in this oil patch. those who keep thinking we'll get a break here, you've had it. you've has it. that chevron run, enjoy yourself. the exxon run, congratulations. >> still among the worst stocks on the dow for the year. except walmart and amex. >> walmart. i have to tell you, i always pull for -- you're not supposed to pull for people. i pulled for denver last night. >> you're a referee, man. i like this walmart. the website has gotten better. >> it has? just in the last month? >> yeah. it has. >> haven't been on it. >> things improve. there were teams that would never beat the eagles that have beaten eagles?
you think walmart can't turn around? >> so walmart is tampa bay? is that what you're saying? >> yeah. >> and he's winston? >> i think walmart -- we've seen things like kansas city chief the lose almost every game at the beginning and make the run. walmart is making a run. it could go to 61. i think 62. >> okay. that's three points. >> it's the nfc east. that's enough. >> exactly. all that discussion leads to us this u.n. climate change conference today in paris. obama attending as well as leaders from over 100 countries. steve sedgwick is in paris with the latest. good morning. >> reporter: good morning to you. it's an interesting meeting for the french hosts in paris because it was only two weeks ago we had those devastating terrorist attacks in the center of paris that cost around 130 lives. that is where the president went first when he got to paris. he laid a rose at the bataclan
concert hall as well to just commemorate that horrific event there. he and other leaders came here today to the site where lindbergh landed after his first transatlantic flight in the late '20s. quite a historic site. it's now a u.n. secure zone. security is tantamount for this event with the 150 plus leaders here. not only president obama, but president ji. you have erdogan and putin here as well. no talks between those two to lessen the tensions between turkey and russia. clearly the president has come here with a message. a message which is not particularly popular with some, but a message which he says is america's answer, they're responsible for a lot of the carbon in the atmosphere and says now is the time to act. let's listen to what the president said about the argument and where we're at
regarding emissions in the u.s. >> we have broken the old arguments for inaction. we've proved that strong economic growth and a safer environment no longer have to conflict with one another. they can work in concert with one another. that should give us hope. >> we've broken the old arguments is what the president said. i think a lot of people in the gop certainly people representing states in wyoming, in west virginia, in texas, heavy coal and oil states as well, they don't think the argument has been broken as well. they think that the clean air act is being used by the epa for this clean power plant of obama's and has overstepped its reach into energy arenas. the argument which the president says has been broken back home, i think there are many people on capitol hill and elsewhere that might want to disagree. if he gets the deal here, he still has to sell it back home. back to you.
>> steve sedgwick, thank you very much. when we come back, a look at amazon's new drone delivery system and why the company is taking shots at regulators. and roger mcnamee will join us. look at the pre-market. if november ends positive t is the sixth positive month of the year. more "squawk on the street" live from post nine in a minute. not afraid to fail. one e some of these experiments may not work. but a few might shape the future. like turning algae into biofuel... ...new technology for capturing co2 emissions... ...and cars twice as efficient as the average car today. ideas exxonmobil scientists are working on to make energy go further... ...no matter how many tries it takes. energy lives here.
. >> it's a drone, after rising vertically like a helicopter to nearly 400 feet, this amazing hybrid design assumes a horizontal other yentation and becomes a streamlined fast airplane. >> amazon in a promotional clip narrated by jeremy clarkson. the drone carrying a box of soccer shoes and delivering it to a family in about 30 minutes. amazon hasn't said when it wants to have the drones in service. it's all pie in the sky until it isn't anymore. >> same-day stuff was amazing. i don't rule anything out. i remember when retailers were
angry because they were playing with funny money. amazon is immensely profitable. if they want to have drones, maybe there will be designated fly zones. >> saying the retail service is immensely profitable -- >> the company is. depending upon what they want to show this costs money. they shut this operation down. >> no doubt. they spent lots of money. he is always about future cash flows. he said that from the first letter he wrote when the company went public. what they invested in is logist logistics. to our conversation earlier why not just order it online when you know you may next get it the next day or two. can easily send it back. zappos also. whoever thought they would buy shoes on the internet. they're making so much money and this is just another example of what we can expect in the future. when that future is, i don't know. >> i only buy shoes on the
internet. i used to go and try them on. i know my size. >> i love that they have to put up the words not simulated. >> they are putting pressure on u.s. regulators, the faa for not moving fast enough. right now the operator has to see the drone. clearly not the case here. >> it's the same dynamic as self-driving cars with municipalities. the logjam will come in how the government responds to that. >> i always worried about the security aspects. it doesn't seem to come up. i remember when we were looking at a drone at the san francisco -- the bureau in san francisco. everybody was looking at it. there's a drone outside. my first thing was okay, like "24" or "strike back" some of the things -- or "jessica jones." check that one out. >> i will. >> yeah, sci-fi. it's not sci-fi. >> yeah. >> the real world. >> comes on the heels of bezos
creating the first reusable rocket through blue origin the other day. >> we're just pedestrian people. do we have any great ideas among the three of us? honestly. any idea -- >> when i have them, i forget almost immediately. >> sometimes i suggested a son on the way to commercial. >> okay. that's good. >> i love music. >> i came back from thanksgiving holiday, only to find out that i'm an idiot and old. >> you're not an idiot. the other thing maybe. >> we'll get cramer's mad -- really mad dash now as we count down to the opening bell. look at the pre-market on this monday. a lot in store over the next five sessions. more "squawk on the street" straight ahead.
time for mad dash on a monday. full week of trading this week, to too. >> the sun king, david, probably didn't realize it he has ten potential ceo candidates for yahoo! responding to multiple requests for who will run yahoo!. there is a ceo at yahoo!. >> there is. forgetting h intin inting his l analyst puts something in print like this, doesn't that mean something regardless? >> yes. if there is that much discussion, where there's smoke, there tends to be something going on. you could say bob peck is
answering his clients suggestions that there has to be a change at the helm. david, i turn to you. starwood is more than in the crowd. >> the latest is don't do the alibaba spin after they have said they will do the alibaba spin. that will happen sometime next year. >> what do you think -- >> depends on the multiple you want to put on the declining core business. >> zero times x -- remember that? >> that's the only thing. >> stay focused, this list, which is kind of a list of people right now who are injured reserve, some physically unable to perform, other people are on practice squads. they're all there. a list of ten candidates. >> it's been a terrible year for the stock. i don't know how many value there is. so much more focus on it than
you would expect for a company that will be very, very small. >> right. >> be aware that the other guys are not selling. google and youtube may be very good. david, you want positive mojo? great karma? >> please. >> ulta. there's a reason i mention companies like ulta. jpmorgan goes from 1.80 price target to 2.15 what can't be done by amazon even with drones? tell me. that's a quiz, watson. >> can't make up your hair and face and all that stuff. >> you can't go to the amazon beauty parlor. at least not yet. drones can't cut hair that i've seen. and that's why ulta is the most unamazonible company on earth -- that's in the oxford dictionary. you cannot amazon ulta. >> you can uber it.
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turkey for 3 billion. i'm talking about big projects in europe. other than the auto industry, anything he can keep doing? we don't hear talk from politicians about that. >> about the strong dollar? >> at the same time, trying to sell any sort of commodity, you're kind of gonzo. >> it's reverberating, industrial american in a significant way. and it will only continue if they keep pressuring rates over ther there. >> i think draghi is an amazing story. we will get to 2% to 3% growth. no help from merkel. the climate change conference is interesting, they have to make a
deal with russia. got things started again and i don't hear it happening. >> not a lot of hope going into the summit. >> opening bell, at the big board, csc celebrating its merger with csra international. at the s&p, blue nile. >> i think it's interesting the online jeweler, signet, zale, kay. thanksgiving was so late. just the window of people forgetting about the holiday. i wonder if we don't see big sales from them.
if you sell on the web, they had letter "w" on squawk this morning. they were talking about good sales. battlegrounds. all that kind of stuff. gopro, battles going on now. battles. >> fedex sees three peak days this season, december 7th, december 14th and today. looking for 12% volume growth. >> unbelievable. this is the u.s. economy. double digit growth in commerce? incredible. >> well, reflective of what we've been talking about all morning. >> i wish the united states post office would offer some projections. >> they'll lose money. i'll project that. >> u.p.s. had a not great
quarter, the stock doesn't come in at all. amazon up, which you knew would happen. you knew netflix would go up. these are unstoppable forces. between now and year-end, managers have to show they own amazon. it's too risky for them not to show that. remember when people used to short amazon on the cash flow. >> of course. it's amazing to look at the company now. $318 billion. >> apple can't get out of its way. i thought it had a good holiday season. don't sell it. just saying. amazon -- i was on amazon a bunch of times this weekend. probably a half dozen times. >> that many times? >> yeah. checking bargains, seeing what to do. my daughter sent me a list, i sent her a list. i send her my amazon gift list. i'm tired. here's what i want. i want the primo levy complete
package. the kershaw 1919 -- world war 1 to world war ii. here's my list. i don't want her to spend a lot of time. amazon gift. >> there you go. >> on friday, jim, when you weren't here, carl and i were, we had the media stocks get hit again. >> yes. >> this on the annual publication -- it is the annual report of disney's 10k. comes out around this time of year every year, around thanksgiving. in it, people focused on neilsen numbers. a couple analysts were on, others have shared their thoughts on it as well. not necessarily new news. people saying we knew this. the stock was under pressure on friday. >> yeah. >> in part because of that number, simply exacerbating the fears already out there about cord cutting, cord shaving. the idea of the skinny bundles. while you still count a sub you
don't know how many networks that particular person is taking in their so-called package. it's the changing economics of the business. slowly perhaps in some ways, but a focus. the stock today a mixed bag. they were all down sharply on friday. >> it is kind of jarring to see that big decline over a couple year period, in people who take espn. >> people say those are neilsen numbers. everything with neilsen is a sample. not just the real numbers. >> bob iger did not see this coming. look at the acquisitions, it's not like he doubled down on cable. he doubled down on movies. movies have a tremendous intellectual property that he can manage. i can't wait for star wars. >> pixar, lucas film. >> we're all going to see star wars. i did not get my tickets early
enough. because all the big places are sold out. >> hard ticket to get. >> this is a movie. >> i'm going see miley cyrus and bono, easier ticket than star wars. >> is it? >> that looks like an interesting show. some reviews -- can you take a picture of yourself when you're there? >> i don't -- i'm the oldest person there. it will be easy to point me out. >> seeing movement in defense today. barklclays cuts ratheon, and general dynamics is upgraded. >> ratheon, stock down four. they made an acquisition, they haven't announced how they will rationalize it. if you want to sell lockheed martin down four, i would suggest you buy it not sell it.
the stocks are in a zone for 2016 that's extraordinary given for what they make. that matters. >> you mentioned the apple watch. we know what it's done for target.com. you're wearing yours now. "usa today" this morning has a list of tech turkeys for 2015. and they call that the top one. along with fios, chip credit cards and the steve jobs movie. >> look. no, it's dark again. >> does it have everything we need right now? no. there was an article about -- two upgrades of fitbit today. >> you're persistent. he gave up on his about -- what was it, carl? three weeks? >> i tried it for a week. >> i like it. >> you kept this thing on your wrist. >> i like it. >> you keep insisting that it does something for you. >> i get a kick out of it. i got the new band, black band. i feel more like daniel craig.
>> that was long. >> let's get to bob pisani and see what's moving on the floor with the dow almost perfectly flat. hey, bob. >> we have modest gains. 9 of 10 sectors on the upside. healthcare is the only sector to the down side. tech has respectable gains. i want to talk about retail. there's a lot of contradictory numbers, trying to sort it out for you. the key headline that everybody talked about was the number with sales down $12.1 billion from $12.29 billion. that seems like a disappointment, but the national retail federation is keeping the holiday sales estimate for the total season up 3.7%, even though the methodology has changed. that's respectable. we're talking 2% gdp. i thought the online sales numbers were impressive. adobe said online sales from thursday to saturday were up 19%. national retail federation, this
was a great headline. 103 million shopped online. 102 million shopped in stores. for the first time online had more shoppers than in the stores. online sales probably even with a 20% gain, probably not about 18% of total retail sales. there were pockets of strength. reports of pretty strong foot traffic at jcpenneys, bath & bod works, victoria secret. macy's reported 15,000 people outside the store, herald square store in manhattan, similar to what they reported last year. of course macy's with a terrible year overall. one of the problems on days like today, cybermonday, the big stocks, department stores don't do as well. we asked our friends how do they do on a cybermonday? this is buy it on friday, sell it today at the close. the s&p in the last ten years, is down an average of 1.2%.
the big department stores, kohl's, target, sears, macy's down typically 2% to 3.5% today. only up one out of ten times in the last ten years. you can see here are they usually to the upside. this is not typically a good day for the retail stocks overall. why the poor performance? a lot not advanced on their cybersales. it reflects that on days like today. as for amazon, it only trades positive 50% of the time in the last ten years. but that's not happening today. it's up strongly. up 120% for the year for amazon. about this staples/office depot deal. there was a report in the post that the deal may be blocked. we don't have confirmation of that. they have until december 8th to make a deal. staples, office depot is trading
close to $7. the implied value of the deal would be close to $10, so there's a big risk premium built into that. a lot of talk of divestiture here. i don't think we heard anything on the conference call for the earnings situation. they said nothing. this has been a news vacuum. i think we need to wait more before we make definite conclusions. china will be important tonight. we mentioned this a couple weeks ago. tonight at the close, all the u.s.-listed china stocks will go into the msci indices. stocks like alibaba and badu and seatrip ctrip are not in the big indices. so indexers who have to buy these stocks, like the een, emerging market index, have to buy these stocks in fairly large numbers, maybe three days of volume at the close tonight. i expect fairly large volume,
maybe some upside in terms of the price. the important thing is these indices will be more representative of the new china, the tech china, not the old industrial china. that's good news for investors overall. carl, back to you. >> thank you very much. let's get to the bond pits t will be a busy week for rick santelli as well. >> especially that jobs report. as we look at tens, basically unchanged. the glide path of interest rates has been compressed and slightly lower in yields. if you open the chart up to july, look at the pattern here. yes, we're higher in many ways, especially when in the context of a central bank going the other way, that's in the form of the bund. look at the difference in patterns, that pattern also starting in july. foreign exchange is where all the action is at. the dollar index overtook and closed above 100, as you see on this chart.
an event that's pretty rare. only happened on one occasion in march. it also happened, of course, pre-2003. as you see on the next chart. and if you wanted to put this in context between mario draghi and janet yellen, especially with the big event on friday that could rubber stamp an interest rate normalization, look at the euro. 104 and 105 handles are crucial. after this break we'll have chicago pmi. that's another number that traders pay close attention to. carl, back to you. >> we'll see you in a few minutes. still to come, the ceo of fis ashg fis, a provider of payments technology will join us. s&p 2088, the dow down almost 22.
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many thought it would be over 50, by a long shot. last look, 56.2, unrevised. get this, this exactly equals the read that we had for september at 48.7. that's odd. if we want to find a lower number, we go back to may, 46.2. this is a miss. whether it falls into the main reason most traders pay attention to this number, we'll have to wait and see. suffice to say, equities have turned a bit negative, yields moving lower and we have more data coming up on housing. carl, back to you. >> thank you very much. shares of under armour sinking in trade. piper jaffey lowering the target from 97 to 88. during the thanksgiving weekend, the ua brand remained promotional, that was a quote. >> this is probably the most
weather-oriented of all of the apparel companies. we heard that vf corp there were discounts. north face. under armour is unique. you need cold weather. a lot of what they've done is technological. weather is cold, we have the right product. they have this connective fitness initiative, so they're not going away. there's people who think the numbers have to come down or kevin plank will pre-announce. if it gets cold, you'll wonder why you didn't pick them up in the 80s. >> microsoft has been up, the transition to cloud has been impressive. >> it is interesting when you see the nfl guys given surfaces. you watch them, they're on the surface. microsoft has a very good deal with the nfl.
i keep hearing good things about microsoft and their earnings power. and how big cloud is. and how legitimate they are. marc benioff, the king of the clouds, came on "mad money" and said these guys are doing an amazing job on the cloud. that's not something he typically says about companies. >> hp enterprise last week told us they would give us more details on an alliance they'll have in terms of cloud and microsoft. they provide the infrastructure. hp no longer has a public cloud offering. >> were you surprised that the initial are action was so bad? >> for hp inc. >> that was bad. >> yeah. that was incredible. >> that was last wednesday after the company reported earnings below what was anticipated. >> took my breath away. it was so bad. intel not doing badly. >> ink and printing, where you
have the japanese yen -- the dollar conversation we had earlier. the weak yen is making their products competitive on a price level. really bringing things down. hp inc. has to decide where they want to compete and where it doesn't. >> do you think it's right -- i was looking at an aluminum company worried about closing a big factory in south carolina. strong dollar in china. >> what's the alternative? not to have free trade? >> no i want the cheapest product for the consumer. i think that the japanese have debased the currency to the point where we can't compete. >> right. as we said, all these companies reporting constant currency to show what the strong dollar is doing to them. when they had the wind at their back for a decade or more, nobody did that. >> you would think the countries could be more creative other than say we will take share from the united states. isn't there another play book? we're doing badly. we're doing terribly.
crush ford. things aren't going well. shut down the meamerican alumin and steel industry. >> i don't think it's that. they are trying to think of what they can do to improve their country. they spend money on infrastructure. we don't spend money on infrastructure. >> they do things for the environment. they do a lot. wind, solar. the play book from every country is the same. we'll take that american market share. i'm tired of it. i'm not running for president. >> no. central bank playbook i guess. >> yeah. by the way, the candidate -- trump has talked about it, i think it's a legitimate issue to talk about aluminum industry is going away, steel industry. >> look at u.s. steel. >> the only thing proud about
the steelers is what's on their helmets. >> the stock needs a concussion pro protocol. >> yes. >> the value of the steelers is more than the value of u.s. steel. think about that. >> stop trading with jim in a moment. don't go away. around here starts at 6:30 a.m. - on the nose. but for me, it starts with the opening bell. and the rush i get, lasts way more than an hour. (announcer) at scottrade, we share your passion for trading. that's why we've built powerful technology to alert you to your next opportunity. because at scottrade, our passion is to power yours.
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time for cramer and stop trading. ambarella will start separating itself. it's been linked with gopro. they have intellectual property behind drones. it would be interesting to see these two die verge. ambarella could surge here. could surge. the other one, we talk about under armour. deckers, uniquely, again, lev levered to needing cold weather. piper cuts numbers, saying promotional christmas. you look at the degree days, the temperature, and you decide. and those charts would look different if it was cold. that's a lot of retail. that's a shame, but that's what happens in retail.
so many things can go wrong. >> isn't there a -- they have on-staff meteorologists, climatologists who can tell you we expect this to be the warmest winter in four years, right? >> yeah. how do you plan for it? in the end you're kind of stuck with who you are. columbia sportswear is stuck with who it is. they didn't bet on what some people would say -- i don't want to get in trouble -- but global warming. it has gotten warmer. statistically it's gotten warmer. >> some parts. >> and there's a window where you needed frost. >> it does get cold in winter. >> but it seems to be later. >> this year. >> let's all agree psychologically they needed colder weather in november. they needed colder weather. these are fabulous companies. columbia, a great company. under armour is a great company. >> people need to be reminded it's going to be cold to buy warm weather gear? >> statistically, yes, yes. i worked with my father for 30 years schlepping around to
various retailers, when it was warm, my father said we'll have a bare christmas. not about being well liked it was about being cold. >> attention must be paid. >> what's on "mad" tonight? >> this has been a hot stock that's cooled today, along with lockheed martin. allergan. brent saunders is on. >> you got brent saunders on tonight? >> hey, the competitive spirit drives me, not unlike c.j. anderson who sat on my bench tonight and watched him win. brent saunders, i'm playing brent saunders! >> i'm tuning in. still sad he and ian reed weren't here. i can't beat you. i knew you would get him. >> i'm a competitive person.
good monday morning. welcome back to "squawk on the street," i'm carl quintanilla with sara eisen, simon hobbs, david faber. we close out november today. trying to get back-to-back positive months on the dow for the first time since the spring, not getting off to a good start as the chicago pmi number comes in lower than anticipated. impending homes at the moment. let's get to diana olick with that. >> impending homes basically flat. up 0.2% compared to september. the street was looking for a 2.5% gain. that's a miss. still up 3.9% from october of 2014. this index measures signed contracts, not closings. so a forward looking indicator
for closings in november and december. these were home owners who were out shopping in october. you may recall we got a disappointing drop in closed sales in october. after a relatively strong spring, fall sales not hot. the number of listings in october was down 4.5% from a year ago. usually we see more listings come on in the fall. it's not happening. higher prices are the culprit. would think sellers want to take advantage, but they can't afford to buy that step up house or can't find one they like. regionally, impending sales homes rose 1.7% in the west, sales fell 1% in the midwest, and 1.7% in the south. all areas except the south seaing hiseeing higher numbers than last year. two speeches from janet yellen
and november payrolls on friday, and an easing from the ecb on thursday and opec on friday. it's interesting, even as the february members have said they may raise rates for the first time on the 16th, the s&p 500 has edged higher through november after that gangbuster 8% comeback from the year before. gabrielle santos and thomas costok join us. welcome, both of you. overnight fund managers have said they are increasing their exposure to u.s. equities to 40%. is that right do? >> we focussed on u.s. equities as one of the major asset classes around the world. we continue to see opportunities in u.s. equities. especially as we expect earnings
to pick up in the fourth quarter and next year and hopefully edging closer to removing that fed uncertainty in a few weeks. >> let's pick that up with thomas, he's the exist. the fed has done much clearly to change expectations. the market now believes they will hike with some caveats on the 16th what do you need to hear from janet yellen this week? >> two things really. the first is she's going to hint at a december rate hike is likely. the second thing is really she's going to emphasize that the rate hiking cycle will be gradual, so she may hint that she could skip the january meeting and the following rate hike could be in march. >> i notice you've been downgrading your own expectati n expectations. that's because you think there are head winds for the economy next year, correct? >> yes. we think the cyclical tailwinds will fade next year.
on top of that, you have tightening financial conditions. it's not only the fed, you have also -- if you look at the dollar, the dollar has been rising strongly. it's at 19% over the past 18 months. you have an increase in bonds spread. corporate financing is getting more expensive. there's a tightening in the economy. on top of that, the cyclical tailwinds are fading. for instance, car sales will plateau next year. so less boost of a growth next year. >> let me pick up the point then on the economy and the tailwinds and the fact that the fed will be flattish on what it does. jpmorgan has a report out talking about next year, car sales peaking, profits peaking, and corporate balance sheets weakening because of the huge buybacks that we're experiencing from cos. the rally might run out of steam the second half of next year. where would you be on that?
we would say for next year it has to be about earnings materializing again. this earnings growth has to come from the top line, from revenue growth. here we disagree a bit on the cyclical expectation for next year. we expect to continue at a pace of 2% growth. we tend to think the consumer can provide that boost. so you will still have support from revenue growth. as a result you can get decent earnings growth for 2016. >> it does seem that that is one of the two big uncertainties that weighed on markets this year, the lack of earnings and sales growth and china. has anything been clarified in your view as to the china growth story or will that weigh on us next year? that was for thomas. >> so, in the near-term, the big decision is the decision on looking at what happens with the currency, we think the currency will slide slightly.
we think growth is stabilized. the authorities will help with growth in china we see china stabilizing. we don't think the major risk is from there. usually that's something to watch next year. >> do you agree? >> we agree. i think we have seen some decent signs that china is stabilizing. that some of the target stimulus measures that china has been implementing has succeeded in stabilizing the economy. that's what we expect for next year. not a bounce back in china, just stable. that's enough for markets. >> in the meantime, what part of the market do you think will work best next year? we'll continue to focus on cyclicals. that's been a big story for this year. we think think there's more steam for next year, especially with the increase in income expectations. that seems supportive for more spending next year, as well as
thinking about financials in the context of a rate hike. we're out of time. thank you for kicking off the week with us. it is a very big week. gellen, dr yellen, draghi and the jobs number. steve is here with more. >> we have decisions, we have data, we have speeches. look at the decisions. today the imf executive board to take up the issue of including the yuan in the sdr basket. not a huge deal, but a vote of confidence in the yuan. ecb on thursday, on interest rates, the big story there is some form of easing is expected. perhaps in the form of a more negative rate. a two tier deposit rate has been talked about on friday, the opec meeting. we will see if the pressure on
saudi arabia mounts to limit their total outpeut. for tuesday, market moving news in her last last speech f. on thursday, yellen has testimony, and that comes before the friday jobs report. on friday, we are mario draghi right here in new york at the economic club of new york. now to the all-important data. ism manufacturing coming tomorrow. the importance is it's on the lineup of contraction and expansion hurt by the dollar and weak overseas growth numbers. all of that despite strong auto sales, wednesday, adp, the first gauge of the overall jobs market followed by the fed's baeige
book. friday, jobs, 205,000 is expected for, compared to 271,000 in october. unemployment rate seen unchanged. average hourly wage, after a decent october going more back to trend at 0.2%. everybody has to pay attention to this with the jobs being the number one factor probably when it comes to what the fed does later this month. it will be exciting. we live for this stuff. thank you very much, steve steve. up next, cybermonday is in full swing today. all the e-commerce players are hoping for big sales numbers who will come out the winner? we'll name some names when "squawk on the street" comes right back. nly thing you think about. that's where at&t can help. at&t has the tools and the network you need, to make working as one easier than ever. virtually anywhere.
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the big shipping season started this weekend. as big e-commerce companies moved up sale the, the question is did the season peak early? morgan brennan has more live from the bronx. good morning. >> reporter: good morning, sarah. for parcel carriers like fed ed and u.p.s., the peak season kicks off with thanksgiving. with amazon, target and other retailers rolling outdoor buster dea deals days ahead of that, more
shoppers began shopping earlier. shopper track says black friday sales may have decreased because of these early promotions. that means more packages being delivered prior to peak season. that's what we're seeing. ship matrix says from november 9th to november 16th, e-commerce volumes jumped 18.5% compared to the same period in 2014. and while they won't have the data for thanksgiving week until likely wednesday, they anticipate an uptick in those numbers as well. ship matrix and many other shipping experts expect a much more drawn out peak season compared to the massive last-minute spikes that we have seen in years past. even so, that's not to say we won't see another late jump in shipping volumes. fedex expects today and the following two mondays to be the top three of the season.
riv rival u.p.s. expects two days before the holiday to be the peak day, and december 21st. >> slowing store traffic as shoppers went online. colin sebastian joining us from san francisco. good morning. good to see you, colin. you see e-commerce is tracking slightly above plan. can you be more specific? >> yeah, sure. from all the data points we've received from the weekend, we're looking at e commerce growth in the mid to high teens on average. that versus expectations for low teens growth year over year. we are seeing resiliency in the face of bricks and mortar weakness across the board for both omni channel retailers and pure plays like amazon. >> the hot phrase in apparel is
promotional, right? we know that the discounts online are just as good. it's just as promotional. why does that weakness not translate to e-commerce? >> well, what's driving e-commerce growth is in part discounting. you can get essentially the same deals online that you can get in stores, but also that secular growth of online shopping. people shifting their holiday shopping spent online from off line. that's a nice tail-wind. secondly a lot of categories such as furniture and apparel. you mentioned nontraditional e-commer e-commerce. and we have mobile, aggregators like amazon taking a larger piece of the pie. >> in all of these articles, it says amazon is the big winner. it's the e-commerce king. can it be that simple? we know target and walmart are going half after those online shoppers, free shipping, early
deals. who else wins besides amazon? >> are some omni channel or multi channel retailers that can see solid growth. with this mobile shift in terms of shopping, it's really inconvenient for consumers to have different apps on their phones and tablets. we think this favors amazon and google. you can go to one or two apps, find the products you're looking for, that's more convenient than traditional shopping on desk-top sites or in stores. >> colin, what do you think is likely to surprise that investors can take advantage of? >> we're seeing in some cases accelerating growth online versus last year. we will see if that continues into the end of the holiday season. that certainly would bode well for all e-commerce next year. and certainly for vertical sites, such as wayfair that operate in one certain category, shutter fly in another category.
we think the aggregators are the true beneficiaries. >> you mentioned shutter fly. you found some technical difficulties there along with some other names, i imagine. what's the punishment for a site that's down on one of the most important days of the year? >> yeah. so shutter fly did have technical issues yesterday with heavy traffic to the site and to the app. it's a matter of customer service at that point in terms of how they react and serve those consumers who are impacted. from what we can tell, they have been proactive. the site is back up and running and they are reaching out to those customers to make sure orders get through. >> so let's talk some stocks then. you want your preferences for amazon, google and others? >> looking into next year, facebook we look. it hasn't performed as well as
google and amazon. on a regti and google we like as an aggregator of e-commerce searches, and with disclosures coming in q1. then amazon. long-term we still see it as a significant winner, both in retail and cloud computing. >> as we continue to shift all our spending online and on mobile, what is going on in the payment business? is that taking share in terms of the business of shopping this year? online payments that is. >> yes, it is. both traditional online as well as mobile payments are both increasingly important. merchants are getting closer to the customers. there's a lot of data you can extract from online payments. pay p paypal is the leader. there's competition from google and apple increasing. this is a trend that will not abate any time soon and maries the in-store and online
experience. again, for investors -- >> colin, i want to come back on amazon. it is right and proper that's the front and center conversation for retail and particularly on a day like today. given where the stock has tracked. we showed it for the last two months, up over 30%. it's more than doubled for the year what further value is there in that? given that the profit margins, particularly in retail can be so discretionary that we never know where we are the bulk of the money is being made on web hosting. how does an investor square that? do you buy the stock here? >> we continue to bite stock here. if you think about amazon and retail, there's still ony're st of walmart. so they're not in a position to harvest earnings, it's about top-line growth. with consistent greater than 20% growth over the coming years,
that justifies the valuation. the stock has done well year to date. there may be profit taking towards the end of the year. we would take advantage of that. >> we'll track this for the next 25 days or so thank you very much. colin sebastian. >> thank you. coming up, trump making headlines once again today. this as chris christie wins a key endorsement ahead of the new hampshire primary. more on that when we come back.
please hold tight, so sorry, but high traffic causing delays. if you wouldn't mind holding, we'll refresh automatically and get going. >> maybe we should keep watching and see if they come back online. >> walmart.com, it didn't go down, but it was taking longer. >> online sales are surging 20% to 40%. it's sort of a good thing, but you wonder what punishment is once the site goes down. >> donald trump making headlines about his september 11th claims. our chief washington correspondent, john harwood hat details. good morning. >> good morning. we're past thanksgiving, last day of november, despite all predictions to the contrary, including my own, donald trump remains at the center of the republican presidential race action. he spent the weekend denying that he mocked the disability of a new york sometimes reporter, even though few believed him on that. he also insisted that he was not going to retract his claims that
have also been debunked by most observers that large numbers of muslims were celebrating as the towers went down in new jersey on 9/11. >> the "washington post" also wrote about tailgate parties. we're looking for other articles, we're looking for other clips. i wouldn't be surprised if we found them, chuck. for some reason they're not that easy to come by. i saw it. so many people saw it, chuck. why would i take it back? i'm not going to take it back. >> now, that not taking it back policy has worked well for donald trump. it did not get him the endorsement of the manchester union leader which over the weekend went to chris christie, the governor of new jersey who also said he doesn't remember the celebration of those muslims in new jersey on 9/11. now, chris christie remains a huge long shot in the race, but if he is going to have a moment in the race, this was the boost that he needed to get a little traction.
you can tell that some other candidates were concerned about this because this morning he was attacked by one of his rivals. guess who? donald trump. he said chris christie had been spending too much time in new jersey while trying to be governor of a state that's deeply troubled. >> ten weeks to iowa, john. john harwood, thank you very much. straight ahead, we'll go live to paris where world leaders are meeting on climate change. and why stop what you're doing to find a bathroom? cialis for daily use, is the only daily tablet approved to treat erectile dysfunction so you can be ready anytime the moment is right. plus cialis treats the frustrating urinary symptoms of bph, like needing to go frequently, day or night. tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex. do not take cialis if you take nitrates for chest pain, as it may cause an unsafe drop in blood pressure. do not drink alcohol in excess. side effects may include headache, upset stomach, delayed backache or muscle ache.
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good morning, i'm sue herera. the white house says while in paris for global climate talks, president obama met with russia's vladimir putin. the two discussed the ongoing civil war in syria and last week's shooting down of a russian fighter jet by turkey. classes are canceled today at the university of chicago after the fbi informed the school of a gun violence threat. 30,000 students and faculty were told to say home after a threat was posted online that mentioned the school's hyde park campus quad. pope francis on his way back to roam after five-day visit to the african continent. the pope met with muslims and called for an end to religious violence. a major retirement announcement from a fixture in the nba. kobe bryant of the l.a. lakers announcing this season will be his last. bryant was drafted right out of high school by the lakers at the
age of 17. that is the cnbc news update. sarah, back to you. >> big moneymaker for nike. >> say the least. sue herera, thank you. the u.n. climate change conference underway in paris. leaders from nearly 150 countries are in attendance including president obama who did meet with vladimir putin, the russian president on the sidelines of the talks. steve sedgwick is live in paris with the latest. steve? >> sarah, thank you very much. how interesting that president obama was meeting with president putin, yet president putin could not find time to meet with mr. erdogan, the turkish president. erdogan and putin have been at each other over a war of words since turkey shot down that russian bomber. that is typical of what's going on on the sidelines. lots of other things going here at the talks where 150 leaders have gathered.
gathered in the shadow of that recent terrorist attack in paris. the security around what is a secure zone, it's a historic site but also a u.n. security zone. back to the climate change talks. president met with the prime minister of india. that's significant, a lot of flayers are on time this board around, including the chinese for a successful deal. president obama and president cji talked about this the indians are not necessarily online. they say you had 200 years to industrialize, use coal, hyd hydrocarbons and now we can't use this? the indians still have 300 million people off the grid without electricity, they see coal fueling 40% to 60% of their
electricity. from india's point of view, they think the developed world has to show them the money and they're asking for an increase in the dollars available to countries like india to wean them off hydrocarbons and coal. that's a sticking point. one thing that's different this time around than 2009, it's a bottom-up approach rather than top-down. everyone is coming forward with their intended nationally determined contribution, the u.s. said it will cut its carbon emissions by 26% to 28% over the next ten years. it remains to be seen whether we will get a successful conference, but certainly an air of pragmatism around. back to you. >> we'll see if they can come to any political agreement. thank you very much. currency is taking center stage this week. the international monetary fund is expected to announce that the yuan will join its international
pa basket of currencies. mark chandler is the global head of currency strategy at brown brothers harryman. he will help us break it down. first on the imf decision, doesn't mean a whole lot in terms of the practical sense of thing, but what is the real significance? >> the real significance is not necessarily about the short-term trade but the recognition that china has comb so far in the last 20 years, the recognition that china is one of the major financial powers. it's a status thing for china. practically the federal reserve will be raising interest rates in a few weeks, probably. every other major bank is likely to be easing policy. this will keep the dollar well supported, including against the chinese currency.
>> for those who say china will unseat the dollar as king. you wrote a book about this, it's not true. >> not true. >> will today be a milestone in china's effort to doing that. >> it's another step towards china fighting its rightful place on the center stage. this is important. 18 out of the last 20 centuries, china was the world's biggest economy, technology leader. so we're talking about a return to normalcy. you mentioned the dollar getting stronger. it does feel like a one-way bet what reverses it? is this buy the rumor or sell the fact on the fed meeting? >> the thing that will happen this week. thursday, the big event, ecb likely to ease policy. we can't take profits on short euro positions. on thursday no matter what the ecb does, because of the jobs number on friday, which will be well off the 270,000 we saw last month. that was the highest for the
year. so some modest pullback suspected. people are more likely to take profits after the jobs data. longer-term investors are better served with a strong dollar next year and well into 2017. >> expectations are huge for the ecb, not least within europe that it can support this huge rally in the bond market it could disappoint on thursday, couldn't it? >> could disappoint but for the last couple of years, since draghi has taken over at the helm of the ecb, he has surprised us at being dovish. >> back in china you frame it like everybody would frame t but you could say longer term who needs legitimacy from whom. the chinese are assessing their own institutions away from the imf and the united states. they have their own agenda here.
people would argue the imf bent the rules here to get on board. it badly needs to be seen to be doing the right thing for beijing, for its own political survivor. this is the second best scenario the first best is if the u.s. congress would have made the money to the imf to allow a reform of the imf so china can get more than belgium's vote. >> the u.s. has like 40% of the votes. >> the key then is we in the west and high-income countries, we want china to not just set up its own institutions, like the aaib, but want them to join the multilateral institutions we already have. >> don't you think -- the chinese aren't stupid. won't they see through that? they don't have the votes, but longer term, is the west on board with china's big ambitions? >> i don't know about the big ambitions, but this is the real issue. china, i think, wants the recognition -- when i talk to
chinese officials, i'm struck by the sense that they think the u.s. and europe have done them a disservice, haven't given them the respect they think they deserve. getting the recognition is what they want. but i agree with you. they have bigger issues. and bigger agendas. but the short piece is they want respect and acknowledgment of how far they have traveled. >> you're looking for sustained dollar strength in '16 or '17? does dollar index go higher next year. >> i think so where we are in the big picture this is the third significant dollar rally we've had since brentwoods. the reagan dollar rally lifted the dollar more than 50%. then we had a ten-year bear market, the clinton dollar rally. that lasted about five years. also stopped by intervention. we have the obama dollar rally now, it's driven by this divergence of monetary policy among the central banks, we have a long way to go. not just months, quarters. >> as go into a political
quarter, do you take that seriously? >> not really. the price of gold, in order to get back to the gold standard, the price of gold has to be ten times higher than it is today. if anything, gold has been falling. we just had a five-year low in gold. people are not flocking to gold because of turkey shooting down the russian plane, because of isis or the terror attacks. >> you don't see a movement to peg it to something else. >> the principle is this, even if the u.s. wanted to it's probably not strong enough to enforce its will in other countries. other countries don't have the strength to force it on the u.s. i'm not sure i buy into the g0 world, but that image is important to knows there probably not a new brentwoods. >> there's also more confidence in the u.s. dollar now than in several years. that argument falls apart. i wanted to get back to your point about the reagan dollar
rally, the clinton dollar rally this is not '90s. can the u.s. economy weather this strong of a u.s. dollar? certainly corporate profits are suffering. >> i don't know why they're suffering because of a u.s. dollar or because of weaker overseas demand. the u.s. only exports about 15% of what we produce. that means 85% is consumed at home. the 15% we export is important but not the key. i think the best thing for u.s. exports is stronger world growth. not necessarily a weaker dollar. >> how quickly does the euro fall to parody? >> briefly, but next year, slower process. a lot of people shorted the euro, short covering ahead of the end of the year. >> one of the biggest weeks in foreign exchange. >> thank you. coming up, the uber for helicopters is expanding into private jets, it's not just for new yorkers anymore.
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[bassist] two late nights in blew an amp.but good nights. sure,music's why we do this,but it's still our business. we spend days booking gigs, then we've gotta put in the miles to get there. but it's not without its perks. like seeing our album sales go through the roof enough to finally start paying meg's little brother- i mean,our new tour manager-with real,actual money. we run on quickbooks.that's how we own it. welcome back to "squawk on the street" on this monday morning. healthcare is standing out as the worst performing sector in
the s&p 500. despite the early losses today, it's in the green for the year so far. following consumer discretionary and technology, the third best performer. among the laggards, universal health, biotech names like vertex, abvie and regeneron. heading into november, biotechnology has been an outperformer. we'll see how that fairs into the afternoon trade. let's send it over to chicago and rick santelli, a flattish start for a big week for the markets. over to you. >> thank you, simon. 48.7 was the read on headline for november pmi, chicago pmi. which equaled september's. complete giveback. and if you look, the 11th read in november, 6 below 55, above 50, and we're like to have to you explain it all. less start with headlines,
alice. >> complete giveback from last months's pop. low the levels since september this wasn't a big surprise. we had to have some pullback. new orders and production, big jumps here. a lot of big jumps in new orders and production levels. the one thing you want to look at, you always want to have new orders above production. >> you want new orders leading production. >> but we're the other way around. production on top of new orders. >> what is that telling me? with production -- new orders not leading production what can i infer from that? >> companies are doing other thing. working on r & d. >> so they're idling the car because they're not in the race. >> absolutely. >> backlog has been a big one what have we learned from a positive number but still in the red in terms of 50?
this is the tenth month in a row that we've been in contraction. you're seeing the big jumps because that's where the orders are coming in. they're not placing orders in advance. there's nothing in the pipeline. >> this is the big one. if you want to understand chicago pmi and the entire economy, it's all about inventories. >> last month we were above 60. we expected this to whittle down. >> so we lost two handles on that. >> that's what purchasers are, whittling down inventory. i'm hearing from them they're not expecting big new orders in november, so these levels will probably stay flat or go lower because we won't do building right now. the other thing is we did a special question asking what are your inventory levels? do you think they're too high, too low, or about right? 44% said they're too high which is a high number. about 54% said they're just
right. so, to me, that tells you that we're not going to see a big bounce. >> if i wanted to make simple inferences, everything these folks do to prepare for the things we'll buy and all the issues for the holidays, it's already in the hopper and spit out. so this really is giving us a glimpse that before we know christmas data, and how demand was, this is giving us an early warning that not to expect much. would that be a good conclusion? >> excellent conclusion, rick. they're telling me these production levels are very, very disappointing. they're not getting indicators from customers that there will be a big influx of orders or need to build inventories. this is a good scenario going into december. i'm not expecting much movement. >> thank you very much, alice. we hope that somehow this is not correct, we will see how the national number looks. if this is an early warning sign don't expect a lot of christmas cheer by the retailers. alice franz, thank you.
just want to keep you posted on a story we brought you. we told you target was experiencing some website issues. the site was down for at least 20 minutes or so. as you can see on my mobile phone, it's just starting to come back online. we are getting reports it's tricky to put things in the cart. obviously, this is one of the most important days. it is cyber monday. target we know has been making a big push to compete with the likes of amazon.com and walmart.com when it companies to online sales. let's send it over now to don with a quick market flash. >> let's stay on that retail theme because shares of business supply stores saples also office depot are moving to the downside today. published reports say the federal trade commission, the ftc, is maybe leaning towards blocking the proposed purchase of office depot by staples. again, those shares certainly a focus today.
remember, that deal has within at least in the works for quite some time. staples and office depot, stocks we're focused on today. >> on this cyber monday, banking on old school strategies to attract customers. we're talking about the print catalog. joining us is the ceo and co-founder of the e-commerce retailer leadberry. you're the hot new start-up appealing to millennials online. why go old school with the catalog? >> like a lot of people, we're facing the same challenges. it's about discovery, how to get in front of new customers, retention. and how do you build your brand. i think we started online like a lot of brands about six years ago when there wasn't as much competition online. to get to that 10 million, 20 million mark. able to scale, you know, through pr, word of mouth and digitally.
but now we've got to go out and find good new customers. i think people forget that we send out, at least as a nation, nearly 12 billion catalog mailings a year. >> i know, i guess i'm just wondering how many of those we throw out. i've been throwing out a lot of bloomingdale's catalogs over the past few weeks. >> people do throw a lot out but i think it's a matter of being able to target the right folks. in terms of digital ads, you might see for 2 seconds. a catalog, somebody might spend up to 2 minutes with it. it's somebody who buys luxury shirts, going into their home and seeing if they'll come back and buy. i think what we're finding is they're buying better than the e-commerce customer. 1.5 times what they buy compared to any commerce customer we acquire online. >> i was really making the comparison with, say, the old sears catalog, with perhaps people being able to buy their
purchase other a period of time and that sort of thing. this is direct marketing, isn't it? this is a smaller catalog, as you keep saying, in competition with, say, sending an e-mail program to people. that's the deal here. >> certainly. if you think 50% of the e-mails we get are promotional e-mails. we have -- people can buy shirts again and again. our top 100 customers have over 74 shirts apiece but 24% of those people have unsubscribed to e-mails. so how do we find them? we bring them back with the catalog. >> on the day we got the climate change meeting in paris, i'm slightly nervous to ask you. isn't this a huge waste to be sending these to everybody's letter boxes when only a small percentage is actually going to reply? >> it's certainly -- you try to do it on recycled paper, you do what you can to make it much more environmentally friendly. you also talk about different things. for example, we talk about the
chesapeake bay if we're from virginia. that might not have anything to do with our shirt bus it's a lot about the people and places we put forward as a brand. we talk a lot about conservation in our last catalog. it's more stole telling, more engagement. you're really leaving the commerce to the online piece of the puzzle. >> restoration hardware famously puts out its big book of thousands of pages which they say works really well. jcpenney has gotten back into it. then you have losers like sky mall who filed for bankruptcy recently. who are you trying to emulate? >> i think it comes back to brand and storytelling. i think -- i feel like everybody's bombarded with internet ads. if we can get two minutes alone with our customer in the house when they flip through the magazine and learn about the products, the value we believe in as a brand, they're going to come online, be invested and purchase and hopefully be a customer for life. we're telling stories. we're engaging with our customer.
that's a world of difference from 50 years ago. >> harvard business school did say it's about brand building potential. how's your business in general? we hear that apparel. we know from the numbers apparel has not been strong in the face of electronics and spending on, say, sport ware. what about you, what are you finding in terms of sales this year? >> i think we're doing well. i think we're doing men's luxury shirts. this is a great product. some people don't buy a suit but they'll come back and buy new shirts. i think it's been a tough november for most folks. things like the weather, which has been the hottest weather on record. hard to sell a shirt in 70 degree weather on the coast. i think what we're beginning to see, a great response. a lot of folks have been waiting. now they've got the money and they're ready to spend so we're optimistic about it. >> i see 30% off online. thank you, paul, the ceo of led
delawa ledberry. we've got amazon coming up, we've got a new drone, but not the kind you can buy, or legally fly here in the u.s. we'll dig into what's going on there. also cyber monday the biggest day online. and the sports retailer fanatics, this is probably going to be their biggest day ever if last year's any indication. when you do business everywhere, the challenges of keeping everyone working together can quickly become the only thing you think about. that's where at&t can help. at&t has the tools and the network you need, to make working as one easier than ever. virtually anywhere. leaving you free to focus on what matters most.